- It is really interesting how, in the
mass media, the economic and business "analysts" are quick to
offer an explanation as to why some event took place AFTER THE FACT! If
the "explanation" they offer of the "EFFECT" or "END
RESULT" of some particular economic or business event were such a
logical and inevitable result of the stated "CAUSE", then why
couldn't these same "analysts" project the EFFECT in advance?
-
- In every University and every college
across this great nation of ours, Economics and Business Students, future
Financial Planners, C.P.A.s, Stock Brokers, and Bank Executives are being
taught that the FED Lowers Interest Rates to "Stimulate the Economy"
and Raises Interest Rates to "Fight Inflation". Most, after they
graduate, fill respected positions in the community, "play the game",
and simply repeat what they have been taught, without ever questioning
or putting the learned "facts" to the test. Then, in turn, citizens
in other professions rely upon these individuals for retirement and investment
advice. "I'm too busy trying to make a living to think about this---It
is all so confusing---The person that gave me investment advice has a degree,
and works for a respected company, therefore he or she must know something",
they say.
-
- In the Federal Reserve Press Release
of June 29, 2006, it states: "The Federal Open Market Committee decided
today to raise its target for the federal funds rate by 25 basis points
to 5 1/4 percent."
-
- Every Mass Media Forum is now chanting
the "ECONOMIC MANTRA" that this is all being done "For our
own good". Do a Google Search: " FED Raises Interest Rates to
Fight Inflation", and you'll see what I mean.
-
- Now do another Google Search: "FED
lowers Interest Rates to Stimulate Economy". The explanations of CAUSE
and EFFECT are AMAZINGLY UNIFORM and SUPERFICIALLY LOGICAL! If the MASS
MEDIA were in reality a FREE PRESS wouldn't you expect to see some ALTERNATIVE
EXPLANATIONS of CAUSE and EFFECT? STOP! THINK! The official "explanation"
is that Inflation and Interest Rates are and must always be INVERSELY RELATED!
NO EXCEPTIONS! Go back to the Google Search you did earlier: "FED
Raises Interest Rates to Fight Inflation".
-
- Therefore, according to the "ECONOMIC
MANTRA" chanted in the "MASS MEDIA FREE PRESS", if Interest
Rates Rise, Inflation must always fall, AND VICE VERSA! The purpose of
this brief article is not to provide answers in the short space available---We'll
get more into the REAL ECONOMICS in future JEFF RENSE RADIO PROGRAMS!---but
to ASK QUESTIONS and SEEK THE TRUTH! Have you ever seen Headlines in the
Mass Media Like: "FED Raises Interest Rates to Depress Economy",
or "FED lowers Interest Rates to Increase Inflation"? Now, if
Inflation and Interest Rates are always INVERSELY RELATED (Go back to your
Google Search: Fed Raises Interest Rates to Fight Inflation"), there
should be some precise mathematical equation defining how the two are related!
In other words, there should be an equation y=(f)x, where "y"
is the inflation rate and "x" is the interest rate.
-
- Therefore, we should be able to predict
exactly where inflation will be with a given change in the interest rate.
We should know, WITH ABSOLUTE MATHEMATICAL PRECISION, what EFFECT the most
recent 25 Basis Point Increase in the Interest rate will have on the Inflation
Rate.
-
- Ask your Financial Advisor: "With
the most recent Interest Rate Hike of 25 Basis Points, EXACTLY WHERE WILL
INFLATION BE IN ONE, THREE, and SIX MONTHS FROM NOW? I DON'T WANT AN ESTIMATE,
I WANT AN EXACT NUMBER!"---Then take the pin that you brought with
you and ask your Financial Advisor if he or she can hear it hit the floor
when you drop it!
-
- Be sure to tune in to the next Jeff Rense
Radio Interview where we'll explore these topics as the GOLD BULL MARKET
RAGES ON! George-Whithhurst..Berry
-
- The
Golden Shield
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